Is the franchisee obligated to develop and operate a C3 Wellness Spa location?

a Location within a specified territory. Relying on the representations made by Franchisee and/or Franchisee's Owners in any submitted application and during the application process and subject to the terms and conditions of this Agreement, Franchisee's request has been approved by Franchisor, subject to the following terms and conditions:

• (1) During the Term of this Agreement and subject to the rights of Franchisor including, but not limited to, the Reserved Rights, Franchisor grants to Franchisee and Franchisee accepts, the nonexclusive license, right and obligation to develop and operate, one Spa Location Franchise in conformity with the System and this Agreement from a single fixed location, selected by Franchisee but requiring the approval of Franchisor ("Franchisee's Spa Location") and, as designated by Franchisor in Franchisor's discretion and Reasonable Business Judgment, within a Designated Territory;
• (2) If, as of the Effective Date, Franchisee has selected a proposed Spa Location that Franchisor approves as Franchisee's Spa Location, then Franchisee's Spa Location shall be identified in Schedule 1 of this Agreement and, Franchisee's Designated Territory shall be identified in Schedule 1 of this Agreement. To be effective, Schedule 1 must be completed and signed by Franchisor. Franchisee's execution of Schedule 1 with a specific location for Franchisee's Spa Location shall constitute Franchisee's obligation to develop and operate the Franchised Business at the designated Franchisee Spa Location;
• (3) If, as of the Effective Date, Franchisee has not selected a proposed Spa Location, and/or has not obtained Franchisor's approval of the proposed Spa Location, and/or Schedule 1 to this Agreement is left incomplete or is not signed by Franchisor, Franchisee must locate, identify and secure a Spa Location for the Franchised Business in accordance with the terms of this Agreement, including the requirement that Franchisee must obtain Franchisor's approval of Franchisee's Spa Location. If, after the Effective Date, Franchisee proposes and Franchisor approves of Franchisee's proposed Spa Location, such approval must be in writing and must be evidenced by Franchisor's execution of Schedule 1 with a specific Spa Location designated and identified in Schedule 1. At the time of executing Schedule 1 and, thereby, approving Franchisee's proposed Spa Location, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, shall designate and determine Franchisee's Designated Territory;

• (4) If, as of the Effective Date or other appropriate periods after the Effective Date, Franchisee has not selected a proposed Spa Location that is approved by Franchisor but, Franchisee has identified an area in which Franchisee may look to secure a site for the Franchised Business, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, may enter into the Site Selection Acknowledgment attached to this Agreement as Exhibit 3. If executed by Franchisor, within the Exhibit 3 Site Selection Acknowledgment, Franchisor shall designate a geographic area (the "Site Selection Area") within which Franchisor, during the Site Selection Period, shall not, on behalf of any third party, approve any new Spa Location.

Source: Item 23 — RECEIPTS (FDD pages 59–293)